Abercrombie & Fitch shares surged premarket after the retailer reported fourth-quarter results exceeding Wall Street expectations. The company posted adjusted earnings per share of $3.68, a $0.10 beat over the consensus estimate of $3.58. Revenue of $1.7 billion also edged past the $1.67 billion forecast, reflecting a 5% year-over-year increase.

This strong performance marked Abercrombie's thirteenth consecutive quarter of growth, with operating margin and EPS at the high end of their January guidance. Full-year fiscal 2025 revenue climbed 6% to $5.3 billion, though the Abercrombie brand saw a 1% net sales decline while Hollister delivered record 15% growth. The company provided fiscal 2026 guidance projecting EPS between $10.20 and $11.00, comfortably above the analyst consensus of $10.40, with full-year net sales expected to grow 3% to 5% and operating margins between 12.0% and 12.5%. The outlook incorporates a 15% tariff impact on imports starting February 24, 2026, estimated at 290 basis points for Q1 and 70 basis points for the full year. Abercrombie also announced $450 million in share repurchases for 2026, following $450 million spent in 2025 alongside $619 million in operating cash flow.